Senate Democrats pass yet another spending plan

Saturday

Illinois Senate Democrats approved their own fiscal 2009 state spending plan Friday, further muddying legislative efforts to agree on a budget by May 31.

Illinois Senate Democrats approved their own fiscal 2009 state spending plan Friday, further muddying legislative efforts to agree on a budget by May 31.

With Republicans voting “no,” the Senate passed six separate budget bills that together call for an increase of $1.7 billion in state spending in the fiscal year that begins July 1.

However, the Senate didn’t vote on two key components of the plan — one to issue $16 billion in bonds to pay down the state’s pension debt, and another that calls for taking more than $500 million out of dedicated state funds. Without that money, the budget OK’d by Senate Democrats Friday isn’t balanced.

The Senate plan joins budgets passed by the House earlier in the week. One House budget generally keeps spending next year at the same level as this year. Another version greatly expands spending, to the point that House Republicans said it is $3 billion out of balance.

House Speaker Michael Madigan, D-Chicago, said the House approved multiple budgets so the Senate could choose the spending level that appeals to them.

However, Senate Democrats opted to craft their own plan that they said forces Illinois government to live within its means.

“With this low-growth budget, we have curtailed spending,” said Sen. Donne Trotter of Chicago, the Senate Democrats’ top budget negotiator.

But its passage also adds a new element to the debate as lawmakers struggle to reach a compromise by May 31 and avoid another protracted overtime session like they endured last year.

“We still have days left (to negotiate),” Trotter said. “Our timing is adequate to get our job done by the first of June.”

Senate Republicans weren’t so sure, especially given the iffy nature of some components of the Senate Democrats’ budget.

“It’s contingent on the pension bonding bill passing, and it appears there are not the votes to pass it,” said Sen. Larry Bomke, R-Springfield, who voted against the budget bills. “It doesn’t make sense to vote on a budget if it is out of balance or if it’s not going anywhere.”

“It’s based on the pension bonds, and we don’t know if that’s going to pass or not,” said Sen. Dale Risinger, R-Peoria. “I’m not in favor of the pension bonds. The market is not doing well. It’s not the time to do it.”

Senate Democrats want the state to issue $16 billion in bonds for pensions. By doing that, about $500 million is freed up to balance the spending plan, which also calls for taking more than $500 out of special state funds. Earlier this year, the Senate approved a similar fund “sweep” to shore up the current budget. However, Madigan didn’t allow the bill to come to a vote in the House.

Even without those two infusions of cash, Senate Republicans said the Democrat budget isn’t balanced because it is overly optimistic about state tax collections next year. Democrats think things like personal and corporate income taxes and sales taxes will increase by $1 billion, despite the economic downturn.

The Senate Democrats’ budget increases per-pupil school funding by $166 and adds $550 million for Medicaid, but that only covers inflationary costs of the program. It does not reduce the state’s backlog of Medicaid bills.

Lawmakers are taking three days off for the Memorial Day holiday. They return to Springfield Tuesday, giving them just five days to meet their May 31 deadline for approving a new budget.